Presenting The College Whose Graduates Have A 62% Student Loan Default Rate

Tyler Durden's picture

It is common knowledge by now that the US has a student loan problem. Specifically, a subprime-sized, student loan default problem, which as was reported last year, has now surpassed a 23% default rate at "for profit" institutions. Yet as all statistical measures, this one too deals in means and medians: very boring, impersonal metrics. Where the truly stunning data emerge is when one performs a granular college by college analysis of the US higher learning system, which is precisely what the WSJ has done, breaking down some 3500 colleges and universities by annual cost, graduation rate, median amount borrowed and most importantly, student-loan default rate. In this context we feel quite bad for the students who graduate from ICPR Junior College of Puerto Rico (or rather the 52% of them who graduate), with a modest $2,250 in student loans to cover the otherwise manageable tuition of $7,158, as a mindboggling 62% of them end up defaulting on their loans!

Who else made the list of the college with the highest default rates? Here is the first page of many in a descending sort by the highest student-loan default rate:

What is quite stunning is that there are 553 colleges in the US that have a student loan default rates of over 25%.

Alternatively, if one sorts by the most expensive colleges in the US to get a sense of what opportunities some of the most respected institutions in the US offer their grads (at least based on how much is paid for the education), one gets these results:

There is much more in the full interactive list (here), although we do caution that the results may be somewhat problematic, as somehow Berea College of Kentucky, which supposedly costs negative $20,746 per year, has its students borrow $6,500 on average, with 5% of them defaulting on ther loans.

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Aziz's picture

Horsemeat education.

ACP's picture

Fresh meat for Baby-Daddy.

Kitler's picture

Only 62% ?

Just wait a while...

camaro68ss's picture

I know people who are 26 years old and have there masters, working at night clubs because its the only job they can find.


What a joke college is

Careless Whisper's picture

The people at the WSJ need some college. PR (Puerto Rico) isn't a State. You can take the top five colleges off the list. The real winner is in CA, which is a state, although Communist.


The They's picture

Fuck! why did I major in continental philosophy? I’m an idiot!

dwdollar's picture

Oh no, here come the Boomers who graduated in 1970 professing how much demand there is for STEM jobs and how everyone should be a Dilbert working for Uncle Scam or one of Uncle Scam's corporations designing the enslavement grid.

Pladizow's picture

I wonder if they teach Puerto Rican Judo? -

"Judo know I got a gun?"

AssFire's picture

Puerto Ricans.... probably all flunked Spanish and still got worthless degrees.

TwoShortPlanks's picture

The US has an environment which has and continues to, actively market that 'Free For All' is a right of every American, while at the same time we are seeing a 'Default Is Ok' mentality rapidly building in the average persons' psyche. The ultimate financial Moral Hazard is building.

What was that old saying about free lunches?

East & West, the Yin & Yang producer/consumer dance.
Part 1:
Part 2:

Remembering of course, that China cannot simply push past the West when its' economy is based almost entirely upon making stuff which the west buys, and we are buying less and less of it as this global shrinkage progresses. They will need to swap places with the West or else contract in unison with the Wests' contraction of consumption. So if the West goes down, so too does China.

Question: Can China end this producer/consumer relationship without destroying itself in the process?
Answer: They can't and that's the only reason why the US can print without consequence...coz they know China knows this reality also.

And don't for one minute believe that China will simply increase its own internal consumption in place of production, that's not the mentality they have.

Chinas' only solution: Set-up a wealth transfer mechanism and simply swap places with the West (either that or War).

And what is China doing? Buying as much Gold as it can of course!

Back to this thread topic; does anyone really believe that the West has a chance, given the state of all that we know right now?

PS. When I say "West", that includes places like Japan...debtor nations!

krispkritter's picture

BTW, if your kids are headed to college please remember to disarm them:

And if they try this in NY, where you can't buy SuperSize sodas, I'd recommend carrying Ipecac because peeing on demand is going to be tough...

clymer's picture

Saved and paid cash for tuition -in-state at U-Mass (helped with GI bill, and reimbursement program from employer).

Fuck student loans

nmewn's picture


I heard about that...apparently the altitude is getting to them out there in Colorado...

“It’s why we have call boxes, it’s why we have safe zones, it’s why we have the whistles," Salazar said, according to KDVR News. "Because you just don’t know who you’re gonna be shooting at. And you don’t know if you feel like you’re gonna be raped, or if you feel like someone’s been following you around or if you feel like you’re in trouble when you may actually not be, that you pop out that gun and you pop -- pop around at somebody.”

You see "children"...women can't make informed decisions about their personal well being & security...Representative Salazar just said so.

Blow the whistle, then just lay back and enjoy it ladies...someone with a gun will be around shortly to take care of it FOR YOU ;-)

derek_vineyard's picture

No draft next war.  Every person having student debt will serve 1 day for each $100 owed, starting with those in default and working backwards to those most indebted.  How things go full circle!

dark pools of soros's picture

3D printing makes gun control irrelevant.. The push now is to regulate gun powder

Osmium's picture

Looks like they are already regulating ammunition.  Not much for sale out there.

A Lunatic's picture

The 2nd amendment already makes gun control irrelevant..........

Bandit und Buster's picture


chubbar's picture

Well, proposing gun control IS illegal. All state representatives as well as federal office holders take an oath the uphold and defend the constitution of the United States. The 2nd amendment of the constitution states that no law shall be passed that infringes upon the right to bear arms. So, any state representative, congress critter, senator, president or any other asshole doesn't get to infringe upon my right to bear arms without having already violated his/her oath of office. Any questions?

ricky2's picture

Well of course you have the right to bear arms, you're just limited to how many claws that said bear arms are allowed to have

MeBizarro's picture

Even for a state rep, this is one of the dumber things I have seen in a while. 

sun tzu's picture

It's as dumb as those wanting to confiscate guns. If certain idiots want to get rid of the 2nd amendment, why not go all the way and get rid of the 1st amendment too?

Mr. Mandelbrot's picture

Their, their now.  Watch that spellin' . . .

Northern Lights's picture

Let me guess, the majority of these "masters" grads working at the club are females and they are either bartenders dressed up as sluts so they get tips, or they're the go-go dancers that dress up like sluts trying to get attention.

Central Bankster's picture

They must have went to "Pennsylvania School of Business".  Going to school for business and having loans default at 35%?  Lol what kind of "Business" school is this exactly?

RebelDevil's picture

It's like any other business school. The problem is the same everywhere: There are too many people who want business degrees, especially for finance. That's why they are under enrollment control for business and finance majors. (depending on the college/university).

Now for engineering, the opposite is almost true.

Freddie's picture

Hope & Change.  Young people and other tards voted for this.

Taint Boil's picture



So when Bush was president there were no defaults but when Obama became president it shot up on day one to 62% - WTF, that stupid nigga Muslim …. how did he do it. Its just like someone flicked a switch or something ….. oops secret service at the door again, I’ll be right bac ..<snap>

Taint Boil's picture




What, no response just down arrows.... 

President Bush = no defaults?

President Obama = a million defaults?

Really? Please explain how and why.



Ok, this is the thing that eludes me. First note that I don’t like Obama – can’t stand him. But please explain how HE did it. Not congress, not the senate, not his administration, not anybody else. How did he the person – Obama - do it and how.


nmewn's picture

Well, I didn't junk you (most everyone here knows I don't really care about up & down democracy bullshit/polling) but it could be, just could be, that Obama actually doubled down on our looming default instead of reversing as a prudent course of action?

The power by law (such as it is these days) that resides with the executive (Obama) is he can veto anything that ADDS to the debt & deficit and make Congress (which is the House & Senate for HuffPo readers out there) override his veto.

He didn't and hasn't and won't.

The larger question for my friends on the left is...why have you allowed a coup, formed from the Senate to take over the Executive branch of our government without uttering a word?

Burnbright's picture

Their is just a significant amount of people on these boards who are simply blind to certian facts and bashing Obama is simply a popular meme around here no matter the reason, even if irrational.


I am not defending Obama at all, simply stating that in fact the student default rate has actually little to do with him. Most students are in default for several reasons. Most students I knew while in college just went because it was what you did after high school. We were pushed very hard at every juncture to plan on going as a freshman in high school. Every single vocational job training program on my school campus was gutted. We were shown constant graphs about how much the average wage earner makes with various degree levels, I remember a statistic thrown out there that a college degree would earn you 1 million dollars more in your life time than a high school diploma. We were told things by teachers like "student debt is the cheapest debt you will ever have, it is worth it." After all that regardless if you showed interest in going to a school or not simply taking the SATs put you on a mailing and call list in which you would receive acceptance based on your score. I only applied to one school and I of course was accepted. I didn't actually know what I wanted to do at the time and was very back and forth about the whole idea. My grandfather had mentioned something about paying for my tuition. I got a call from a recruiter for the school and she wanted to take me to the school for a weekend and let me stay there to see how I would enjoy it. To say the least I had a blast, but looking back on the experience I was exceptionally naive about the whole thing. It was a whine and dine job to sucker me in and I fell for it hard. I got to hang out with 2 guys that were both much older than myself and we basically partied all weekend, the recruiter also took me out to dinner several times. When you are that young with no idea of what to do and people throw money, parties, and young women at you what do you think is going to happen?

No one really talked about the non-dischargable debt, or a career path. The hardest question was "what do you want to major in?"

The real reason for the huge default rate is the fact that student loan debt is non-dis-chargeable which is why they will let anyone with a heart beat sign for a student loan. I was somewhat lucky in that I did not take on any private student loan debt. I never had a credit card, never had a car loan. I hated credit but somehow I was blind to the notion that student loans were credit cards but worse. I strongly sympathize with students in default because honestly it isn't really their fault either. You can't really blame a kid for taking candy from someone when they dangle it in front of their face as they ramble on about how great it is. I thought of myself as an adult when I was 18 but I mostly just had my head square up my ass. So what sense does it make to loan someone money for the purpose of education? Thinking about myself I would never loan money to a person based on the premise that they some how get a better career path out of it when they never had held down a full time job. Makes absolutely no sense what so ever. 

Miffed Microbiologist's picture

Your post is very interesting to me. I guess I'm a bit shocked at your naivety. Perhaps your parents didnt gave you any aid in such matters? Our daughter was determined to go to private college. We advised her not to with student loans. She got some cash from us with the expectation she would repay it ( it won't bankrupt us if she fails to do so), some cash from grandma which means she'll get no inheritance and took out a few loans herself which we, of course, refused to cosign. Her payment is 400/month which is manageable for her at this time. If it ever becomes unmanageable, she at 23 must figure it out.

During the 2000s we like many others were inundated with offers for credit. Our absolute favorite one was an offer for 1.2 million dollars in financing. We were making under $150,000/ year. We laughed our heads off that anyone would be so foolish to offer us that kind of credit at our income level. We don't have genius IQs but we can do math well enough to know we could never pay that back. I guess the realization of this made us suspicious of the whole scenario and, therefore, we decided not to participate. I guess critical thinking and a cautious approach to decisions is just not popular. We raise our children to be nice, not wise. This has got us into a lot of trouble.

I hope what you describe has at least been a learning experience for you and you will never make the same mistake twice. I hope you can somehow escape the prison of those loans and start fresh. I hope the issuers of those loans take some responsiblity for what they have done. It all seems so hopeless.


Burnbright's picture

Each generation has its own lesson to learn it seems. I grew up as a child and young adult in the 90's and that decade seemed to influence me the most when it came to financial decisions. I remember very vividly thinking to myself that borrowing x amount of money wasn't a big deal cause it just seemed so accessible at the time. Also you don't really consider the cost of paying off a loan when you are simply trying to pay bills. Like your daughter paying $400 a month in loan costs is a lot of money. I suppose it depends on her cost of living and where she lives but $400 dollars on top of what you have to pay is 1/3 the cost of rent, or a car + insurance + gas for a month or groceries for a month for one person.  For someone who hasn't really entered the workforce yet a yearly income is more of an idea, some goal far off into the future. 

And please don't feel sorry for me. That wasn't the point of my post. I am a very happy family man.



Miffed Microbiologist's picture

I'm very glad you are happy. Money matters shouldn't be cause for dispair. My daughter is living with 3 other students in a house they rent in Spokane. Her work is within walking distance. She's borrowed a car from grandma who lives 15 miles away but rarely uses it. The only laugh I had was when she told us her budget she had only allotted $100/ month for food. Ah... To be young and foolish again! She called me at the end of her first month and said she was very hungry. Luckily grandma had slaughtered a steer so she had access to protein. So yes she is living incredibly frugally. But she is supporting herself and learning volumes. When she got her job they offered her a reasonable salary with a 10 % commission. She refused it and took the low salary with a 35% commission. They warned her not to do that because normally very experienced people do that and she was just out of college. Of course I begged her to choose the safer route but she said she wanted the challenge. The exuberance of youth. But this is the time to try your wings and make mistakes. At least without a family or anyone else depending on her she can takes some risks.

I didn't mean to sound like I was patronizing you or demeaning you in any way. Everyone makes mistakes and every generation vows not to make the mistakes of the previous generation only to make new unforeseen mistakes. Perhaps this is just the nature of humanity. Being a happy family man must make any money problems at least easier to deal with. I know several people in horrible marriages facing possible bankruptcy and a very uncertain future. That must be true hell! Best wishes.


Taint Boil's picture



Wow, some readable and intelligent dialog on Zero Hedge.

MeBizarro's picture

No sense replying to Freddie.  He's just Grade A 100% peckerwood white trash. 

Tijuana Donkey Show's picture

Don't hate on Freddie! Anger is anger, and he's mad as fuck about the system. Some people express it in other ways, Freddie calls it how he sees it. Freddie Unchained!

sun tzu's picture

Only a racist redneck nazi could ever in their drug-induced wildest dreams imagine that Lord Master King God Obama could be flawed in any way

MeBizarro's picture

Hadn't seen you post your usual worthless trash in a while.  Figured you weren't around anymore. 

sun tzu's picture

Yep, anyone criticizing your Messiah must be a bigot and racist, because we all know that his Highness Lord God Savior Obama can do no wrong. Maybe that's why you got the thumbs down, you inbred drooling chimp

jmc8888's picture

A Nightclub really isn't a good example. Barback/Bus Boys can make nearly a grand a week. I've seen $900, and there's no doubt higher.  $100/hr fake titty waitresses.

cynicalskeptic's picture

See... A 'Women's Studies' degree CAN pay .......

nope-1004's picture

Intelligent dead beats.


Dr. Richard Head's picture

Dead beats?  Hell no.  With "Berea College of Kentucky, which supposedly costs negative $20,746 per year" they are following the primary dealer bank model.  You might just want to call these institutions Primary Education outlets, come to think of it.